A Performance-Based Roadmap to a Permanent Two-State Solution to the Israeli-Palestinian Conflict

The following is a performance-based and goal-driven
roadmap, with clear phases, timelines, target dates, and benchmarks aiming at progress through reciprocal steps by the two parties in the political, security, economic,
humanitarian, and institution-building fields, under the auspices of the Quartet [the United States, European Union, United Nations, and Russia]. The destination is a final and
comprehensive settlement of the Israel-Palestinian conflict by 2005, as presented in President Bush s speech of 24 June, and welcomed by the EU, Russia and the UN in the 16 July
and 17 September Quartet Ministerial statements.

A two-state solution to the Israeli-Palestinian conflict will
only be achieved through an end to violence and terrorism, when the Palestinian people have a leadership acting decisively against terror and willing and able to build a
practicing democracy based on tolerance and liberty, and through Israel`s readiness to do what is necessary for a democratic Palestinian state to be established, and a clear,
unambiguous acceptance by both parties of the goal of a negotiated settlement as described below. The Quartet will assist and facilitate implementation of the plan, starting in
Phase I, including direct discussions between the parties as required. The plan establishes a realistic timeline for implementation. However, as a performance-based plan,
progress will require and depend upon the good faith efforts of the parties, and their compliance with each of the obligations outlined below. Should the parties perform their
obligations rapidly, progress within and through the phases may come sooner than indicated in the plan. Non-compliance with obligations will impede progress.

A settlement, negotiated between the parties, will result in
the emergence of an independent, democratic, and viable Palestinian state living side by side in peace and security with Israel and its other neighbors. The settlement will resolve the
Israel-Palestinian conflict, and end the occupation that began in 1967, based on the foundations of the Madrid Conference, the principle of land for peace, UNSCRs 242, 338 and 1397,
agreements previously reached by the parties, and the initiative of Saudi Crown Prince Abdullah endorsed by the Beirut Arab League Summit calling for acceptance of Israel as
a neighbor living in peace and security, in the context of a comprehensive settlement.

This initiative is a vital element of international efforts to
promote a comprehensive peace on all tracks, including the Syrian-Israeli and Lebanese-Israeli tracks.

The Quartet will meet regularly at senior levels to evaluate
the parties' performance on implementation of the plan. In each phase, the parties are expected to perform their obligations in parallel, unless otherwise indicated.

In Phase I, the Palestinians immediately undertake an
unconditional cessation of violence according to the steps outlined below; such action should be accompanied by supportive measures undertaken by Israel. Palestinians and
Israelis resume security cooperation based on the Tenet work plan to end violence, terrorism, and incitement through restructured and effective Palestinian security services.
Palestinians undertake comprehensive political reform in preparation for statehood, including drafting a Palestinian constitution, and free, fair and open elections upon the basis
of those measures. Israel takes all necessary steps to help normalize Palestinian life.

Israel withdraws from Palestinian areas occupied from
September 28, 2000 and the two sides restore the status quo that existed at that time, as security performance and cooperation progress. Israel also freezes all settlement
activity, consistent with the Mitchell report.

At the outset of Phase I:

* Palestinian leadership issues unequivocal statement
reiterating Israel`s right to exist in peace and security and calling for an immediate and unconditional ceasefire to end armed activity and all acts of violence against Israelis
anywhere. All official Palestinian institutions end incitement against Israel.

* Israeli leadership issues unequivocal statement affirming
its commitment to the two-state vision of an independent, viable, sovereign Palestinian state living in peace and security alongside Israel, as expressed by President Bush, and calling
for an immediate end to violence against Palestinians everywhere. All official Israeli institutions end incitement against Palestinians.

Security

* Palestinians declare an unequivocal end to violence and
terrorism and undertake visible efforts on the ground to arrest, disrupt, and restrain individuals and groups conducting and planning violent attacks on Israelis anywhere.

* Rebuilt and refocused Palestinian Authority security
apparatus begins sustained, targeted, and effective operations aimed at confronting all those engaged in terror and dismantlement of terrorist capabilities and infrastructure.
This includes commencing confiscation of illegal weapons and consolidation of security authority, free of association with terror and corruption.

* GOI takes no actions undermining trust, including
deportations, attacks on civilians; confiscation and/or demolition of Palestinian homes and property, as a punitive measure or to facilitate Israeli construction; destruction of
Palestinian institutions and infrastructure; and other measures specified in the Tenet work plan.

* Relying on existing mechanisms and on-the-ground
resources, Quartet representatives begin informal monitoring and consult with the parties on establishment of a formal monitoring mechanism and its implementation.

* Implementation, as previously agreed, of U.S.
rebuilding, training and resumed security cooperation plan in collaboration with outside oversight board (U.S. Egypt Jordan). Quartet support for efforts to achieve a lasting, comprehensive cease-fire.

+ All Palestinian security organizations are
consolidated into three services reporting to an empowered Interior Minister.

+ Restructured/retrained Palestinian security forces
and IDF counterparts progressively resume security cooperation and other undertakings in implementation of the Tenet work plan, including regular senior-level meetings, with
the participation of U.S. security officials.

* Arab states cut off public and private funding and all
other forms of support for groups supporting and engaging in violence and terror.

* All donors providing budgetary support for the
Palestinians channel these funds through the Palestinian Ministry of Finance's Single Treasury Account.

* As comprehensive security performance moves forward,
IDF withdraws progressively from areas occupied since September 28, 2000 and the two sides restore the status quo that existed prior to September 28, 2000.

* Continued appointment of Palestinian ministers
empowered to undertake fundamental reform. Completion of further steps to achieve genuine separation of powers, including any necessary Palestinian legal reforms for this purpose.

* Palestinian performance on judicial, administrative, and
economic benchmarks, as established by the International Task Force on Palestinian Reform.

* As early as possible, and based upon the above
measures and in the context of open debate and transparent candidate selection/electoral campaign based on a free, multi-party process, Palestinians hold free, open, and fair elections.

* GOI reopens Palestinian Chamber of Commerce and
other closed Palestinian institutions in East Jerusalem based on a commitment that these institutions operate strictly in accordance with prior agreements between the parties.

Humanitarian Response

* Israel takes measures to improve the humanitarian
situation. Israel and Palestinians implement in full all recommendations of the Bertini report to improve humanitarian conditions, lifting curfews and easing
restrictions on movement of persons and goods, and allowing full, safe, and unfettered access of international and humanitarian personnel.

* AHLC reviews the humanitarian situation and prospects
for economic development in the West Bank and Gaza and launches a major donor assistance effort, including to the reform effort.

In the second phase, efforts are focused on the option of
creating an independent Palestinian state with provisional borders and attributes of sovereignty, based on the new constitution, as a way station to a permanent status
settlement. As has been noted, this goal can be achieved when the Palestinian people have a leadership acting decisively against terror, willing and able to build a practicing
democracy based on tolerance and liberty. With such a leadership, reformed civil institutions and security structures, the Palestinians will have the active support of the Quartet
and the broader international community in establishing an independent, viable, state.

Progress into Phase II will be based upon the consensus
judgment of the Quartet of whether conditions are appropriate to proceed, taking into account performance of both parties. Furthering and sustaining efforts to normalize
Palestinian lives and build Palestinian institutions, Phase II starts after Palestinian elections and ends with possible creation of an independent Palestinian state with provisional
borders in 2003. Its primary goals are continued comprehensive security performance and effective security cooperation, continued normalization of Palestinian life and
institution-building, further building on and sustaining of the goals outlined in Phase I, ratification of a democratic Palestinian constitution, formal establishment of office of
prime minister, consolidation of political reform, and the creation of a Palestinian state with provisional borders.

* International Conference: Convened by the Quartet, in
consultation with the parties, immediately after the successful conclusion of Palestinian elections, to support Palestinian economic recovery and launch a process, leading
to establishment of an independent Palestinian state with provisional borders.

+ Such a meeting would be inclusive, based on the
goal of a comprehensive Middle East peace (including between Israel and Syria, and Israel and Lebanon), and based on the principles described in the preamble to this document.

+ Revival of multilateral engagement on issues
including regional water resources, environment, economic development, refugees, and arms control issues.

* New constitution for democratic, independent
Palestinian state is finalized and approved by appropriate Palestinian institutions. Further elections, if required, should follow approval of the new constitution.

* Continued comprehensive security performance,
including effective security cooperation on the bases laid out in Phase I.

* Creation of an independent Palestinian state with
provisional borders through a process of Israeli-Palestinian engagement, launched by the international conference. As part of this process, implementation of prior agreements, to
enhance maximum territorial contiguity, including further action on settlements in conjunction with establishment of a Palestinian state with provisional borders.

* Enhanced international role in monitoring transition,
with the active, sustained, and operational support of the Quartet.

* Quartet members promote international recognition of
Palestinian state, including possible UN membership.

Progress into Phase III, based on consensus judgment of
Quartet, and taking into account actions of both parties and Quartet monitoring. Phase III objectives are consolidation of reform and stabilization of Palestinian institutions, sustained,
effective Palestinian security performance, and Israeli-Palestinian negotiations aimed at a permanent status agreement in 2005.

* Second International Conference: Convened by
Quartet, in consultation with the parties, at beginning of 2004 to endorse agreement reached on an independent Palestinian state with provisional borders and formally to
launch a process with the active, sustained, and operational support of the Quartet, leading to a final, permanent status resolution in 2005, including on borders, Jerusalem, refugees,
settlements; and, to support progress toward a comprehensive Middle East settlement between Israel and Lebanon and Israel and Syria, to be achieved as soon as possible.

* Continued comprehensive, effective progress on the
reform agenda laid out by the Task Force in preparation for final status agreement.

* Continued sustained and effective security
performance, and sustained, effective security cooperation on the bases laid out in Phase I.

* International efforts to facilitate reform and stabilize
Palestinian institutions and the Palestinian economy, in preparation for final status agreement.

* Parties reach final and comprehensive permanent status
agreement that ends the Israel-Palestinian conflict in 2005, through a settlement negotiated between the parties based on UNSCR 242, 338, and 1397, that ends the occupation that
began in 1967, and includes an agreed, just, fair, and realistic solution to the refugee issue, and a negotiated resolution on the status of Jerusalem that takes into account the political
and religious concerns of both sides, and protects the religious interests of Jews, Christians, and Muslims worldwide, and fulfills the vision of two states, Israel and sovereign,
independent, democratic and viable Palestine, living side-by-side in peace and security.

* Arab state acceptance of full normal relations with
Israel and security for all the states of the region in the context of a comprehensive Arab-Israeli peace.